Singapore Exchange Ltd (SGX)

Singapore Exchange is Asia’s leading and trusted market infrastructure, facilitating the exchange of capital and ideas to create value for people, businesses and economies. As a multi-asset exchange operating equity, fixed income and derivatives markets to the highest regulatory standards, SGX is a vertically integrated business that provides listing, trading, clearing, settlement, depository and data services.

With about 40% of listed companies and over 80% of listed bonds originating outside of Singapore as well as established linkages across the region and in Europe, SGX is Asia’s most international and connected exchange. Offering a full suite of derivatives products across Asian equity indices, commodities and currencies, SGX is the world’s most liquid international market for the benchmark equity indices of China, India, Japan and ASEAN.

As Asia’s pioneering central counterparty, SGX is globally recognised for its risk management and clearing capabilities, and was one of the first globally to adopt the Principles for Financial Market Infrastructure.

Headquartered in AAA-rated Singapore, SGX has over 800 employees including offices in Beijing, Chicago, Hong Kong, London, New York, Mumbai, San Francisco, Shanghai and Tokyo.

Asia’s leading multi-asset exchange

SGX Market Strategist, Equity & Fixed Income, Singapore Exchange Ltd (SGX)

Geoff Howie

SGX Market Strategist, Equity & Fixed Income

Equity Bottom-Up

Capitaland Commercial Trust / Equity Bottom-Up

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·       Elite Commercial REIT, a first UK-Focused Singapore REIT, made its debut on the SGX Mainboard today. Based on a GBP/SGD exchange rate of 1.683, its portfolio has an appraised value of S$537.2 million, comprising mostly freehold leasehold office spaces in the UK. 

·       The UK Government’s Department for Work and Pensions, is the key tenant which makes up 99% of the REIT’s current revenue. The manager currently projects distribution yields of 7.1% in forecast year 2020 and 7.2% in projection year 2021.

·       Prior to Elite Commercial REIT's listing, SGX lists a total of eight Office REITS. Their combined market capitalisation is more than S$20 billion and have an average price-to-net asset of 1.1x and an average dividend yield of 6%. 
 

Elite Commercial REIT is a Singapore real estate investment trust (REIT) which has a UK-focused portfolio in commercial assets and real estate-related assets. The REIT is traded in GBP and its exchange code will be <a href="https://www2.sgx.com/securities/equities/MXNU">MXNU</a>.

The initial portfolio of Elite Commercial REIT will consist of 97 quality commercial assets located across the UK and 99% of the properties are mostly freehold. Almost all of the gross rental income is derived from the existing leases with the UK Government via the Secretary of state for housing, communities and local government. The Department for Work and Pension (DWP) occupies each property under a group sharing arrangement.

Key Industry Office Real Estate Trends in the UK

<ul>
<li>
According to CBRE Research, <a href="https://www.cbre.co.uk/research-and-reports/United-Kingdom-Real-Estate-Market-Outlook-2020">UK real estate market outlook 2020 report</a>, the office real estate space in the UK is expected to remain significantly resilient amidst a slow growth rate. This is suggested to be due to the tight supply of new properties partly due to the uncertainty surrounding post-Brexit negotiations. 
	 </li>
	<li>The REIT Manager, Elite Commercial REIT Management Pte Ltd, is looking to adopt a few asset enhancement initiatives to improve rental income and value. Examples of such initiatives are to improve interior and exterior signage and create more leasable spaces.  
	 </li>
	<li>UK’s ageing population is driving long-term structural demand growth for pension services from the DWP.</li>
</ul>
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-02/latest%201%20UK%20ageing%20population.PNG' alt='UK Ageing Population' />
 </figure>
 <div class='content-caption'>UK Ageing Population</div>
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Highlights in Elite Commercial REIT's IPO Prospectus include:

<ol>
<li>Portfolio of Commercial Assets with strong operating metrics</li>
</ol>
<ul>
<li>
Consistently stable cash flow – 99% of the gross rental income is derived from the UK government and it is also backed by UK Sovereign credit. This represents a low level of default risk. 
</li>
	<li>
High-Quality Properties – 96 out of 97 of the portfolio’s properties are freehold and one property is on a long leasehold with the tenure expiring on 19 May 2255. The geographical spread of the properties are also favourable as 40% of the portfolio by Gross rental income is situated in London, the South and Midlands of the UK.
</li>
</ul>
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-02/Latest%20Geographical%20Appraised%20Value.PNG' alt='Geographical Mix by Appraised Value' />
 </figure>
 <div class='content-caption'>Geographical Mix by Appraised Value</div>
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2.       Highly experienced Strong Sponsors with exposure to Commercial markets in gateway cities globally

<ul>
<li>
Industry players – Elite Commercial REIT boasts 3 sponsors Elite Partners Holdings, Ho Lee Group and Sunway RE Capital. All 3 firms have experienced in the REITS sector which would act as key advisers for the REIT’s manager. 
	 </li>
	<li>
Strong REIT Management Team – The REIT Manager averages a minimum of 15 years of relevant experience across UK real estate investment and management, corporate finance, financial management and REITS. They were instrumental in acquiring the IPO Portfolio and was actively involved in discussions with key stakeholders.</li>
</ul>
3.       Resilient and High Quality Commercial Assets

<ul>
<li>
Background – The properties in the portfolio are mainly leased to DWP. DWP is responsible for providing crucial social services to the UK as they support the society in four key segments. Mainly in Jobcentre Plus (to help with unemployment), pension services (usage expected to increase in line with an ageing population), child maintenance services and disability services. The importance of DWP to the UK’s Social fabric makes it a unique counter-cyclical occupier. 
	 </li>
	<li>
UK Government’s Largest Public Service Department – Total benefit for FY 2018/2019 was £182.5bn, which covers approximately 20 million DWP benefits claimants. 
	 </li>
	<li>
Provides Key DWP Services – 82.5% of assets cater to Jobcentre plus, pension services, child maintenance services and disability services. 17.5% of assets caters to back end roles such as finance, IT support, call centres and claims processing, amongst other functions.</li>
</ul>
<ul>
<li>
Well-Located Assets -The assets in Elite Commercial REIT’s portfolio are well-located as they are primarily in town centres close to public transport nodes. 74.2% of the assets are centrally located in city centres, town centres and city suburbs.  </li>
</ul>
4.       Growth potential from enhancement, redevelopment and acquisition opportunities

<ul>
<li>
Acquisition Potential  - The portfolio could leverage on the sponsors’ sourcing capabilities to take advantage of the most liquid real estate market in Europe. 
	 </li>
	<li>
Redevelopment or conversion potential – Certain assets have the potential to be redeveloped into higher grade offices or converted to other use to maximize yield/value. 
	 </li>
	<li>
Asset enhancement potential – untapped land with potential for increased utilisation</li>
</ul>
 

Key Strategies (See Page 125 of the IPO Prospectus for more information on strategy)

<ul>
<li>The manager is looking to continue its acquisition growth strategy backed by a rigorous research driven selection process focused in the UK. 
	 </li>
	<li>The manager will also practice active asset management and enhancement strategy to drive organic growth in revenue and the maintaining strong property relationships. 
	 </li>
	<li>The manager will practice prudent capital management strategy as they will seek to use a good mix of debt and equity in financing acquisitions and asset enhancement. </li>
</ul>
 

Key Risks (See Page 67 of the IPO Prospectus for more information on risk factors)

<ul>
<li>The REIT is UK focused and it may be adversely affected by economic and real estate conditions of the global and UK economy. Adverse conditions in the global economy might affect tenants ability to pay rent and in turn affect the Distribution Per Unit (DPU) of the REIT. 
	 </li>
	<li>As the UK Government is the largest customer which represents 99% of the REIT’s revenue, any change in policy might affect the income of the REIT. Post-Brexit negotiations is also a key event in 2020 that might impact the profitability of the REIT as the UK goes through structural changes. 
	 </li>
	<li>Macroeconomic events such as interest rates fluctuations are also significant to the REIT’s profitability as it affects access to capital and also it’s DPU. 
	 </li>
	<li>A majority of the properties lease agreement are set to expire in 2028 and certain lease agreements give the tenants the option to terminate in 2023.</li>
</ul>
 

Financials 

<ul>
<li>According to the unaudited pro forma financial statements, revenue grew 434% from the period 7 June 2018 - 31 December 2018 against the period eight months ended 31 August 2019. 
	 </li>
	<li>Forecasted net property income for forecast year 2020 and projection year 2021 is £22.7 million for both years. 
	 </li>
	<li>Distributable income for forecast year 2020 and projection year 2021 are £16.1 million and £16.4 million respectively. This would imply a distribution yield of 7.1% and 7.2% respectively based on an offer price of £0.68.  </li>
</ul>
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<figure>
 <img src='https://api2.sgx.com/sites/default/files/2020-02/latest%20key%20financial%20metrics.PNG' alt='Key Financial Metrics' />
 </figure>
 <div class='content-caption'>Key Financial Metrics</div>
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Valuation

<ul>
<li> According to the IPO prospectus, Elite commercial REIT’s price to net asset value ratio (P/NAV) is 1.2x which is calculated based on an offer price of £0.68, outstanding shares of 332.2 million units and net asset of  £196.2 million. 
	 </li>
</ul>
SGX’s Cluster of 8 Office REITs

SGX boasts one of the region’s largest REITs centre where the combined market capitalisation of its 43 REITs &amp; Property Trusts is over S$100 billion. Among the 43, 8 are Office REITs with a market capitalisation of S$20.3 billion. The office REIT sector is trading at an average P/NAV of 1.1x and an average dividend yield of 6%. Elite Commercial REIT will be the first UK-focused REIT to be listed on SGX.

<table class="table table-striped"><tbody>
<tr>
<td>
			Name 
			</td>
			<td>
			Stock Code 
			</td>
			<td>
			Market Cap S$M 
			</td>
			<td>
			Total Return YTD %
			</td>
			<td>
			1 Year Total Return %
			</td>
			<td>
			3 Year Annualised Return %
			</td>
			<td>
			P/NAV (x)
			</td>
			<td>
			Div Yield %#
			</td>
			<td>
			ROE (%)
			</td>
		</tr>
<tr>
<td>
			CAPITALAND COMMERCIAL TRUST
			</td>
			<td>
			C61U
			</td>
			<td>
			7,908
			</td>
			<td>
			6
			</td>
			<td>
			14
			</td>
			<td>
			17
			</td>
			<td>
			1.1
			</td>
			<td>
			4
			</td>
			<td>
			6.2
			</td>
		</tr>
<tr>
<td>
			KEPPEL REIT
			</td>
			<td>
			K71U
			</td>
			<td>
			4,227
			</td>
			<td>
			1
			</td>
			<td>
			9
			</td>
			<td>
			12
			</td>
			<td>
			0.9
			</td>
			<td>
			5
			</td>
			<td>
			2.6
			</td>
		</tr>
<tr>
<td>
			OUE COMMERCIAL REIT
			</td>
			<td>
			TS0U
			</td>
			<td>
			2,885
			</td>
			<td>
			-4
			</td>
			<td>
			16
			</td>
			<td>
			2
			</td>
			<td>
			0.7
			</td>
			<td>
			6
			</td>
			<td>
			4.4
			</td>
		</tr>
<tr>
<td>
			MANULIFE US REIT
			</td>
			<td>
			BTOU
			</td>
			<td>
			1,663
			</td>
			<td>
			7
			</td>
			<td>
			37
			</td>
			<td>
			18
			</td>
			<td>
			1.3
			</td>
			<td>
			6
			</td>
			<td>
			4.1
			</td>
		</tr>
<tr>
<td>
			FRASERS COMMERCIAL TRUST
			</td>
			<td>
			ND8U
			</td>
			<td>
			1,528
			</td>
			<td>
			1
			</td>
			<td>
			19
			</td>
			<td>
			17
			</td>
			<td>
			1.0
			</td>
			<td>
			6
			</td>
			<td>
			10.2
			</td>
		</tr>
<tr>
<td>
			PRIME US REIT
			</td>
			<td>
			OXMU
			</td>
			<td>
			944
			</td>
			<td>
			8
			</td>
			<td>
			N/A
			</td>
			<td>
			N/A
			</td>
			<td>
			1.2
			</td>
			<td>
			8*
			</td>
			<td>
			N/A
			</td>
		</tr>
<tr>
<td>
			KEPPEL PACIFIC OAK US REIT
			</td>
			<td>
			CMOU
			</td>
			<td>
			735
			</td>
			<td>
			5
			</td>
			<td>
			31
			</td>
			<td>
			N/A
			</td>
			<td>
			1.0
			</td>
			<td>
			6
			</td>
			<td>
			9.9
			</td>
		</tr>
<tr>
<td>
			IREIT GLOBAL
			</td>
			<td>
			UD1U
			</td>
			<td>
			538
			</td>
			<td>
			4
			</td>
			<td>
			22
			</td>
			<td>
			13
			</td>
			<td>
			1.1
			</td>
			<td>
			7
			</td>
			<td>
			16.5
			</td>
		</tr>
<tr>
<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			Average
			</td>
			<td>
			1.1
			</td>
			<td>
			6
			</td>
			<td>
			 
			</td>
		</tr>
<tr>
<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			 
			</td>
			<td>
			Median
			</td>
			<td>
			1.1
			</td>
			<td>
			6
			</td>
			<td>
			 
			</td>
		</tr>
</tbody></table>
 

Source:  Bloomberg, SGX StockFacts (Data as of 05 February 2020)

* Note that the dividend yield for Prime US REIT is from the IPO Prospectus

# Dividend Yield as of 31 January 2020

Additional Information from Prospectus (<a href="https://links.sgx.com/FileOpen/Elite%20Commercial%20REIT%20Prospectus%20(28Jan2020).ashx?App=IPO&amp;FileID=6126">click here)</a>   Cornerstone Units 
Immediately post the offering and redemption, the following cornerstone investors will collectively hold 77.8 million units, representing 23.4% interest. These cornerstone investors are: 

•            UBS AG, Singapore Branch (on behalf of certain wealth management clients)

•            Bank of Singapore Limited (on behalf of one or more of its private banking clients)

•            CIMB Bank Berhad, Singapore Branch (on behalf of certain clients of its private banking division)  IPO Details

<ul>
<li>Offer price at £0.68 per unit</li>
	<li>Offered units 114.7 million units (if Over-Allotment Option is not exercised)
	<ul>
<li>108.9 million to investors outside the USA</li>
		<li>5.7 million units under SG public offering</li>
	</ul>
</li>
	<li>Estimated IPO market capitalisation at £225.9 million (S$402 million)</li>
	<li>Use of total proceeds from the Offering and Cornerstone units (Total  £130.9 million or S$232 million):
	<ul>
<li>£101.9 million – Partial repayment of existing facility agreements/loans</li>
		<li>£18.9 million – Redemption of a number of the Private Trust Units</li>
		<li>£8.3 million – Transaction costs</li>
		<li>£1.8 million – Working Capital</li>
	</ul>
</li>
</ul>
 
</body></html>



·       Elite Commercial REIT, a first UK-Focused Singapore REIT, made its debut on the SGX Mainboard today. Based on a GBP/SGD exchange rate of 1.683, its portfolio has an appraised value of S$537.2 million, comprising mostly freehold leasehold office spaces in the UK. 

·       The UK Government’s Department for Work and Pensions, is the key tenant which makes up 99% of the REIT’s current revenue. The manager currently projects distribution yields of 7.1% in forecast year 2020 and 7.2% in projection year 2021.

·       Prior to Elite Commercial REIT's listing, SGX lists a total of eight Office REITS. Their combined market capitalisation is more than S$20 billion and have an average price-to-net asset of 1.1x and an average dividend yield of 6%. 
 

Elite Commercial REIT is a Singapore real estate investment trust (REIT) which has a UK-focused portfolio in commercial assets and real estate-related assets. The REIT is traded in GBP and its exchange code will be MXNU.

The initial portfolio of Elite Commercial REIT will consist of 97 quality commercial assets located across the UK and 99% of the properties are mostly freehold. Almost all of the gross rental income is derived from the existing leases with the UK Government via the Secretary of state for housing, communities and local government. The Department for Work and Pension (DWP) occupies each property under a group sharing arrangement.

Key Industry Office Real Estate Trends in the UK



According to CBRE Research, UK real estate market outlook 2020 report, the office real estate space in the UK is expected to remain significantly resilient amidst a slow growth rate. This is suggested to be due to the tight supply of new properties partly due to the uncertainty surrounding post-Brexit negotiations. 
	 
	The REIT Manager, Elite Commercial REIT Management Pte Ltd, is looking to adopt a few asset enhancement initiatives to improve rental income and value. Examples of such initiatives are to improve interior and exterior signage and create more leasable spaces.  
	 
	UK’s ageing population is driving long-term structural demand growth for pension services from the DWP.




      
    
    UK Ageing Population


Highlights in Elite Commercial REIT's IPO Prospectus include:


Portfolio of Commercial Assets with strong operating metrics



Consistently stable cash flow – 99% of the gross rental income is derived from the UK government and it is also backed by UK Sovereign credit. This represents a low level of default risk. 

	
High-Quality Properties – 96 out of 97 of the portfolio’s properties are freehold and one property is on a long leasehold with the tenure expiring on 19 May 2255. The geographical spread of the properties are also favourable as 40% of the portfolio by Gross rental income is situated in London, the South and Midlands of the UK.





      
    
    Geographical Mix by Appraised Value


2.       Highly experienced Strong Sponsors with exposure to Commercial markets in gateway cities globally



Industry players – Elite Commercial REIT boasts 3 sponsors Elite Partners Holdings, Ho Lee Group and Sunway RE Capital. All 3 firms have experienced in the REITS sector which would act as key advisers for the REIT’s manager. 
	 
	
Strong REIT Management Team – The REIT Manager averages a minimum of 15 years of relevant experience across UK real estate investment and management, corporate finance, financial management and REITS. They were instrumental in acquiring the IPO Portfolio and was actively involved in discussions with key stakeholders.

3.       Resilient and High Quality Commercial Assets



Background – The properties in the portfolio are mainly leased to DWP. DWP is responsible for providing crucial social services to the UK as they support the society in four key segments. Mainly in Jobcentre Plus (to help with unemployment), pension services (usage expected to increase in line with an ageing population), child maintenance services and disability services. The importance of DWP to the UK’s Social fabric makes it a unique counter-cyclical occupier. 
	 
	
UK Government’s Largest Public Service Department – Total benefit for FY 2018/2019 was £182.5bn, which covers approximately 20 million DWP benefits claimants. 
	 
	
Provides Key DWP Services – 82.5% of assets cater to Jobcentre plus, pension services, child maintenance services and disability services. 17.5% of assets caters to back end roles such as finance, IT support, call centres and claims processing, amongst other functions.



Well-Located Assets -The assets in Elite Commercial REIT’s portfolio are well-located as they are primarily in town centres close to public transport nodes. 74.2% of the assets are centrally located in city centres, town centres and city suburbs.  

4.       Growth potential from enhancement, redevelopment and acquisition opportunities



Acquisition Potential  - The portfolio could leverage on the sponsors’ sourcing capabilities to take advantage of the most liquid real estate market in Europe. 
	 
	
Redevelopment or conversion potential – Certain assets have the potential to be redeveloped into higher grade offices or converted to other use to maximize yield/value. 
	 
	
Asset enhancement potential – untapped land with potential for increased utilisation

 

Key Strategies (See Page 125 of the IPO Prospectus for more information on strategy)


The manager is looking to continue its acquisition growth strategy backed by a rigorous research driven selection process focused in the UK. 
	 
	The manager will also practice active asset management and enhancement strategy to drive organic growth in revenue and the maintaining strong property relationships. 
	 
	The manager will practice prudent capital management strategy as they will seek to use a good mix of debt and equity in financing acquisitions and asset enhancement. 

 

Key Risks (See Page 67 of the IPO Prospectus for more information on risk factors)


The REIT is UK focused and it may be adversely affected by economic and real estate conditions of the global and UK economy. Adverse conditions in the global economy might affect tenants ability to pay rent and in turn affect the Distribution Per Unit (DPU) of the REIT. 
	 
	As the UK Government is the largest customer which represents 99% of the REIT’s revenue, any change in policy might affect the income of the REIT. Post-Brexit negotiations is also a key event in 2020 that might impact the profitability of the REIT as the UK goes through structural changes. 
	 
	Macroeconomic events such as interest rates fluctuations are also significant to the REIT’s profitability as it affects access to capital and also it’s DPU. 
	 
	A majority of the properties lease agreement are set to expire in 2028 and certain lease agreements give the tenants the option to terminate in 2023.

 

Financials 


According to the unaudited pro forma financial statements, revenue grew 434% from the period 7 June 2018 - 31 December 2018 against the period eight months ended 31 August 2019. 
	 
	Forecasted net property income for forecast year 2020 and projection year 2021 is £22.7 million for both years. 
	 
	Distributable income for forecast year 2020 and projection year 2021 are £16.1 million and £16.4 million respectively. This would imply a distribution yield of 7.1% and 7.2% respectively based on an offer price of £0.68.  




      
    
    Key Financial Metrics


Valuation


 According to the IPO prospectus, Elite commercial REIT’s price to net asset value ratio (P/NAV) is 1.2x which is calculated based on an offer price of £0.68, outstanding shares of 332.2 million units and net asset of  £196.2 million. 
	 

SGX’s Cluster of 8 Office REITs

SGX boasts one of the region’s largest REITs centre where the combined market capitalisation of its 43 REITs &amp; Property Trusts is over S$100 billion. Among the 43, 8 are Office REITs with a market capitalisation of S$20.3 billion. The office REIT sector is trading at an average P/NAV of 1.1x and an average dividend yield of 6%. Elite Commercial REIT will be the first UK-focused REIT to be listed on SGX.




			Name 
			
			
			Stock Code 
			
			
			Market Cap S$M 
			
			
			Total Return YTD %
			
			
			1 Year Total Return %
			
			
			3 Year Annualised Return %
			
			
			P/NAV (x)
			
			
			Div Yield %#
			
			
			ROE (%)
			
		


			CAPITALAND COMMERCIAL TRUST
			
			
			C61U
			
			
			7,908
			
			
			6
			
			
			14
			
			
			17
			
			
			1.1
			
			
			4
			
			
			6.2
			
		


			KEPPEL REIT
			
			
			K71U
			
			
			4,227
			
			
			1
			
			
			9
			
			
			12
			
			
			0.9
			
			
			5
			
			
			2.6
			
		


			OUE COMMERCIAL REIT
			
			
			TS0U
			
			
			2,885
			
			
			-4
			
			
			16
			
			
			2
			
			
			0.7
			
			
			6
			
			
			4.4
			
		


			MANULIFE US REIT
			
			
			BTOU
			
			
			1,663
			
			
			7
			
			
			37
			
			
			18
			
			
			1.3
			
			
			6
			
			
			4.1
			
		


			FRASERS COMMERCIAL TRUST
			
			
			ND8U
			
			
			1,528
			
			
			1
			
			
			19
			
			
			17
			
			
			1.0
			
			
			6
			
			
			10.2
			
		


			PRIME US REIT
			
			
			OXMU
			
			
			944
			
			
			8
			
			
			N/A
			
			
			N/A
			
			
			1.2
			
			
			8*
			
			
			N/A
			
		


			KEPPEL PACIFIC OAK US REIT
			
			
			CMOU
			
			
			735
			
			
			5
			
			
			31
			
			
			N/A
			
			
			1.0
			
			
			6
			
			
			9.9
			
		


			IREIT GLOBAL
			
			
			UD1U
			
			
			538
			
			
			4
			
			
			22
			
			
			13
			
			
			1.1
			
			
			7
			
			
			16.5
			
		


			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			Average
			
			
			1.1
			
			
			6
			
			
			 
			
		


			 
			
			
			 
			
			
			 
			
			
			 
			
			
			 
			
			
			Median
			
			
			1.1
			
			
			6
			
			
			 
			
		

 

Source:  Bloomberg, SGX StockFacts (Data as of 05 February 2020)

* Note that the dividend yield for Prime US REIT is from the IPO Prospectus

# Dividend Yield as of 31 January 2020

Additional Information from Prospectus (click here)   Cornerstone Units  
Immediately post the offering and redemption, the following cornerstone investors will collectively hold 77.8 million units, representing 23.4% interest. These cornerstone investors are: 

•            UBS AG, Singapore Branch (on behalf of certain wealth management clients)

•            Bank of Singapore Limited (on behalf of one or more of its private banking clients)

•            CIMB Bank Berhad, Singapore Branch (on behalf of certain clients of its private banking division)   IPO Details


Offer price at £0.68 per unit
	Offered units 114.7 million units (if Over-Allotment Option is not exercised)
	
108.9 million to investors outside the USA
		5.7 million units under SG public offering
	

	Estimated IPO market capitalisation at £225.9 million (S$402 million)
	Use of total proceeds from the Offering and Cornerstone units (Total  £130.9 million or S$232 million):
	
£101.9 million – Partial repayment of existing facility agreements/loans
		£18.9 million – Redemption of a number of the Private Trust Units
		£8.3 million – Transaction costs
		£1.8 million – Working Capital
	


 



First UK-Focused Elite Commercial REIT Debuts on SGX 